Dubai's stock market jumped in early trade on Tuesday, outperforming other regional peers, as the emirate plans to launch a multi-billion dirham market-maker fund.
Dubai's main share index advanced 3.1%, hitting its highest since Aug. 2018, as most of the stocks on the index were in positive territory, including Dubai Investments which soared 11.6%.
Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate's deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.
He said a committee overseeing the stock market's development approved a goal to double the financial market's size to 3 trillion dirhams, adding that 10 state and state-related firms would be listed on Dubai Financial Market.
Sheikh Maktoum also announced the formation of a market supervisory committee and specialised courts for capital markets in Dubai.
Among other gainers, Dubai Financial Market surged 14.2%, its biggest intraday gain in about 18 months.
On the other hand, DAMAC Properties retreated 2.1%, on course to end two sessions of gains.
Dubai property tycoon Hussain Sajwani's investment vehicle said on Monday he and "associated group members" now own 91.65% of DAMAC in a buyout of minority shareholders expected to be completed by the end of March.
Saudi Arabia's benchmark index added 0.3%, with Al Rajhi Bank rising 1% and Dr Sulaiman Al-Habib Medical Services putting on 1.2%.
Oil prices rose as key producer group OPEC undershot its expected pace of output increases last month, while the world's top oil consumer China ramped up operating rates to meet a spike in diesel demand.
In Abu Dhabi, the index edged 0.2% higher, helped by a 0.7% gain in the country's largest lender First Abu Dhabi Bank.
The Qatari index gained 0.4%, led by a 0.4%increase in Qatar National Bank.
($1 = 3.6726 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))
